Attendees check out the new iPhone 16 Pro and 16 Pro Max during a special Apple event at Apple headquarters in Cupertino, California, on September 9, 2024.
Justin Sullivan | Getty Images News | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Brand new iPhone
apple There were a lot of new products launched on Monday night. Highlights: iPhone 16 Pro and Pro Max have larger screens, and their non-Pro siblings finally get the Pro’s “action” button; newly designed Apple Watch Series 10; AirPods 4 headphones. Apple’s artificial intelligence features will be available in beta on new iPhones – and investors will be watching to see if they boost sluggish iPhone sales.
Debate over interest rate cuts
Economists such as George Lagarias of Forvis Mazars believe that a 50 basis point rate cut “could send the wrong message to the market.” However, Destination Wealth Management CEO Michael Yoshikami believes it would be “a very positive sign,” echoing Nobel laureate Joseph Stiglitz’s view that A cut of 50 percentage points should be considered.
Goldman Sachs loses $400 million
Goldman Sachs Chief Executive David Solomon said at a conference on Monday that the bank will take a pre-tax hit of about $400 million in the third quarter as it winds down its ill-fated push into consumer banking. The joint ventures include Goldman Sachs’ general card business and separate loan portfolios.
(PRO) Macro factors will not affect Buffett
Markets have been volatile in recent weeks amid concerns about the health of the U.S. economy, labor market conditions, the trajectory of interest rate cuts and many other factors. However, to Warren Buffett, none of these macroeconomic factors matter when he invests.
bottom line
Maybe it just takes something shiny and new to lift our spirits and lift us out of our recession fears.
I’m kidding – but only partially.
apple Stylish new iPhones, watches and headphones were launched on Monday. The excitement of the event and the prospect of anticipation may have boosted market sentiment.
Critics who think this claim is far-fetched should remember that Apple accounts for more than half of U.S. smartphone shipments. Counterpoint study. In addition, 2023 Bloomberg survey The study found that 79% of Gen Z prefer iPhones to other smartphones, which means Apple’s market share is likely to increase even more as this group’s earning power increases.
Indeed, Apple’s stock price rose only 0.04% after the incident. But, as CNBC’s Kelly Evans points out, the Cupertino-based company’s stock price tends to fall after product launches.
The reversal of the trend offers a glimmer of hope that Apple’s plans to incorporate artificial intelligence into its phones will revive iPhone sales, which have been declining as competition from Chinese brands intensifies.
When the S&P 500’s largest components experience tailwinds, other stocks benefit from its slipstream.
NVIDIA The index rose 3.5% after falling 14% last week. The broader market also rose. both Standard & Poor’s and Nasdaq Index rose 1.16%, while Dow Jones Industrial Average up 1.2%.
Apart from Apple’s announcement, there is no other major news that will move the market.
Of course, the Apple incident wasn’t the only reason for yesterday’s stock market rally. Last week’s broad sell-off provided investors with an opportunity to buy stocks at relatively cheap prices, which would spark a rebound.
As mentioned yesterday, the market is still very much driven by emotion.
In other words, the consumer price index report and producer price index report released on Wednesday and Thursday respectively are specific data that may have a huge impact on the market.
They’ll also tell us whether we can afford those shiny new things Apple dangles in front of us.
– CNBC’s Pia Singh and Lisa Kailai Han contributed to this article.
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